If you are unsure how to sell on eToro, you’re in the right place. In this beginner’s guide, we will provide you with two options for selling on eToro, “Closing a Trade” and “Short Selling”. Each process can be broken down into just a few simple steps.
Etoro is an investment platform which started in 2007 and has become one of the most popular investing platforms for trading. Investors can buy and sell stocks and cryptocurrency and also interact with like-minded investors.
So, let’s jump into this eToro beginners’ guide to help you learn how to sell on eToro.
How to Sell on eToro
Selling on eToro can be confusing at first as there are two different selling options on eToro; “Short Selling” and “Closing a Trade.” So, what is the difference between these selling options?
What is eToro?
eToro is a popular trading platform where investors can trade stocks, ETFs, cryptocurrencies, and CFDs. Founded in 2007 by three entrepreneurs, the platform is now trusted by millions of customers worldwide. The aim of eToro was to make trading accessible to anyone, anywhere, and reduce dependency on traditional financial institutions.
Short Selling on eToro
Short Selling, also known as “Shorting”, is an advanced investing technique where you sell an asset (stock or crypto) you don’t currently own but believe will go down in value in the future. With the intention to repurchase that asset at a later date for a cheaper price.
Obviously, the objective of short selling is to make a profit. However, the asset’s value could also increase in value, which would mean the trade has gone against you, causing you to lose money.
Short Selling isn’t for beginners and is an investing technique for experienced traders who know what they are doing and understand the risks involved.
Please note: Short selling on eToro may not be available in all regions.
Closing a Trade on eToro
Closing a Trade is where you sell an asset, stocks, cryptocurrency, or ETF you currently own in your portfolio. When you close a trade on eToro, eToro will pay you the agreed value of the asset when you close the trade. Once the trade has been made, it will no longer be available in your portfolio.
How to Sell Stocks on eToro
How to Sell Crypto on eToro
How to Close a Trade on eToro
Closing a trade on eToro is selling your stock or cryptocurrency. In doing this, eToro will pay you the value of the stock you’ve sold and then repurchase it. You then don’t own that stock anymore, and once it’s closed, it disappears from your portfolio.
- How to close a trade:
- Open the eToro website
- Create an account/login (free to sign up)
- Click on your portfolio
- Select what you want to sell
- Close the trade
How to Short Sell on eToro
Short selling on eToro is where you sell a stock that may not be yours, which you believe will go down in value and then you purchase it back again. The outcome here is that you would make a profit. However, short selling can be very risky and shouldn’t be because if the stock returns again, you lose money.
- How to short sell:
- Type in the stock you would like to short sell
- Select the ‘trade’ option
- Select the ‘sell’ option
- Type in the amount you want to sell the stock for and select the ‘open trade’ option.
What are the Costs of Selling on eToro?
eToro has a 0% commission on stocks with no extras or markups. There are, however, deposit fees and spreads (Spreads are the difference in percentage between the bid price and the asking price.). The cost for withdrawal from eToro is $5 USD (eToro always shows in USD). The only “hidden” fees to look out for are when the account has been inactive for a period of time.
The account you open is free, and you can get started with a demo account instead of diving straight into trading. This is great if you’re new to the trading world, and it can be an excellent opportunity to use the resources and information eToro provides to build on your knowledge.
Selling stocks and cryptocurrency can look confusing at first but don’t worry. Learning how to sell on eToro has never been easier.
As we see from our how-to-sell on eToro guide, the selling process is pretty simple. Even though Etoro doesn’t charge any trading fees, the spread between the buy and sell price can be high. So, doing this too often will eat into your profit, so consider this when selling on eToro.
There may be a few reasons why you can not sell your eToro stocks. If the sell option isn’t available, this may be down to the volatility of the stock or the market. Unlike crypto, stocks don’t trade 24/7, so the sell option may be disabled after trading hours.
Yes, closing a trade on eToro is the same as selling a stock.